Datasonic Group Berhad Annual Report 2021

2021 ANNUAL REPORT 191 48. FINANCIAL INSTRUMENTS (CONT’D) 48.4 FAIR VALUE INFORMATION (CONT’D) (a) Fair Value of Financial Instruments Carried at Fair Value (i) The fair values above have been determined using the following basis:- (aa) The fair value of the club membership is estimated based on its market price. (bb) The fair values of short-term investments are measured at their quoted closing bid prices at the end of the financial year. (ii) There were no transfer between level 1 and level 2 during the financial year. (b) Fair Value of Financial Instruments not Carried at Fair Value The fair values, which are for disclosure purposes, have been determined using the following basis:- (i) The fair values of trade receivables (non-current) are determined using discounted cash flows based on risk-free rates ranging from 3.00% to 3.88% (2020 - 3.62% to 3.88%). (ii) The fair values of term financing and term loans are determined by discounting the relevant cash flows using current market interest rates for similar instruments at the end of the financial year. The interest rates used to discount the estimated cash flows are as follows:- Group Company 2021 2020 2021 2020 % % % % Term financing 3.20 4.20 3.20 4.20 Term loans 3.05 to 4.30 3.80 to 5.05 - - 49. SIGNIFICANT EVENTS DURING THE FINANCIAL YEAR (a) Bonus Issue The Company had on 5 August 2020 proposed to undertake the Bonus Issue of up to 2,176,875,000 new ordinary shares in Datasonic Group Berhad (“Datasonic Shares”) (“Bonus Shares”) on the basis of 1 Bonus Share for every 1 Datasonic Share held on an entitlement date to be determined and announced later. On 18 August 2020, Bursa Malaysia vide its letter dated 17 August 2020, resolved to approve the listing and quotation of the following:- (i) up to 2,176,875,000 Bonus Shares to be issued pursuant to the Proposed Bonus Issue; (ii) up to 675,000,000 Additional Warrants; and (iii) up to 675,000,000 new Datasonic Shares to be issued from the exercise of the said Additional Warrants, on the Main Market of Bursa Securities. On 2 October 2020, the Bonus Issue was completed following the listing and quotation of:- (i) 1,350,000,000 Bonus Shares issued pursuant to the Bonus Issue; and (ii) 675,000,000 Additional Warrants issued arising from the Adjustments, on the Main Market of Bursa Securities. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2021 (CONT’D)